The document analyzes the risk and return of Pakistan's bond market from 2005 to 2015. It aims to analyze the factors affecting returns in the bond market. The researchers conducted interviews and literature reviews on bond markets. They identified key factors like risk, interest rates, fiscal deficit, exchange rates and GDP that could impact bond yields. Regression analysis was performed on Pakistan Investment Bond data from 3, 5 and 10 year bonds against the independent variables. The results found positive relationships between bond yields and risk, interest rates, and fiscal deficit. Exchange rates and GDP had negative relationships with bond yields.

1. RISK & RETURN ANALYSIS OF
BOND MARKET IN PAKISTAN
Faculty Advisor:
Ms. Tazeen Arsalan
Researchers:
Abdul Hadi Khanani
Armoghan Moin
Qandeel Fatima Memon
Samra Javed
Syed Jahanzeb Haider
Yamna Shumas
Zoya Talat

2. SPECIAL THANKS TO CDC

3. OBJECTIVES OF THE STUDY
To Analyze
The Risk And
Return Of
Bond Market
in Pakistan
To Analyze
The Factors
affecting
Return on
Bond Market
in Pakistan

4. OUTLINE
 Introduction
 Bond Market Importance
 Bond Market in Pakistan
 Bond Timeline & History
 Future Prospect
 Literature Review
 Methodology
 Findings
 Discussions

5. DEFINITIONS
Bonds
A bond is a debt investment in which an investor
loans money to an entity (typically corporate or
governmental) which borrows the funds for
a defined period of time at a variable or fixed
interest rate. Owners of bonds are debt holders, or
creditors, of the issuer.
 Bond Market:
The bond market – also called the debt market
or credit market – is a financial market in which the
participants are provided with the issuance and
trading of debt securities.

6. DIMENSIONS OF BOND MARKETS
BUYERS
-Companies
-Government
-Individuals
ISSUERS
-Companies
-Government

7. IMPORTANCE OF BOND MARKETS
BUYERS ISSUERS
Steady income Cost Effective
Small investors Competition to banks
Diversification Alternative means of raising debt capital
Central Banks issue bonds to:
• develop infrastructure of the country
•Invest to earn return
•To monitor currency value
• to control money supply, and subsequently
•To control inflation

8. BENEFITS OF BOND MARKET ON
ECONOMY
Avenue to invest
Direct competition to banks
Good indicator of wider macro- level
signals
Money supply is absorbed
Inflation is controlled
Improvement in currency
Foreign portfolio investment

9. NEED FOR DEBT MARKET
 Microeconomic Role
• Local Borrowing – Elimination of maturity
mismatch
• Foreign Borrowing – Twin Mismatch
(Maturity, FOREX Risk)
• Facilitates Development of Risk Management
Instruments
 Macroeconomic Role
• Alternative Source of Borrowing
• Credit Risk Dispersion
• Risk – Possible Contagion Effect

10. TYPES OF BONDS
2)Government
bonds
• Pakistan
Investment
Bonds
• US Special
Dollar Bonds
• WAPDA
Bonds
• National
Saving Bonds
• Sukuk
1)Corporate
Bonds
Engro Bonds

11. HISTORY OF BOND MARKET IN
PAKISTAN
1960 To cover non-banking segment, Prize Bonds were introduced followed by various
NSS Schemes.
1990s Market based Government Securities came into existence.
1992 Introduction of long term paper (FIB).
Long term yield curve emerged giving opportunity to the corporate to come up
with instruments.
1995 Foundation of the corporate bond market was laid with the first issue of Term
Final Certificates (TFC).
2000 Introduction of Pakistan Investment Bonds. (PIBs).
Long term instruments gained momentum.
SBP introduced selective Primary Dealer System (PD).
2001 KIBOR/KIBID rates were introduced to provide inter-bank call money curve.
2001-05 Corporate Bond market was vibrant, adding approximately PKR 65 Billion issuance or
98% of total issuance to date.
2005 SBP issued guidelines on Forward Rate Agreement (FRA), Interest Rate Swaps (IRS) and
Currency Options.
2007 Introduction of Engro bonds of Rs 4 billion.
2008 Introduction of GoP Ijara Sukuk.

12. 2009-10 The Government raised Rs. 64.31 billion, as against the target of Rs. 60
billion, through the auctions of Pakistan Investment Bonds (PIBs).
A total of four tranches of GoP Ijara Sukuk had been issued.
Bond Automated Trading System (BATS), a new debt market platform was
introduced. It allows electronic order entry and matching facility, which will
provide a more efficient and transparent way to trade debt market
securities.
April 12, 2009 KSE and MUFAP joined hands for the development corporate debt market
Trading – KSE, Settlement – NCC, Custodian – CDC
TFCs to be traded through BATS in the first phase
Government securities to be traded in the 2nd phase
2010-11 Development of an electronic fixed income trading platform provided by
Bloomberg called E-BOND : Electronic Bond Trading Platform.
2012 According to SBP and SECP, the domestic bonds outstanding were 30
percent of the GDP, which mostly consisted of government bonds, as the
corporate bonds market was less developed.
2014 Pakistani bonds revived investor interest Corporate market came under
investors focus.
Pakistan rose $2 billion through Euro Bonds.
2015 Pakistan issued $500 million Euro Bonds.
October 2016 Pakistan rose $1 billion through Sukuk bonds.

13. PROBLEMS IN BOND MARKET OF
PAKISTAN
 High administration cost
 Lack of Technological developments – transparency
and liquidity
 Weak Market Infrastructure
 Expectations of inflation and frequent devaluation of
PKR hindered the foreign investment
 Lack of Benchmark in the market – Valuation
problems (PIB 3,5, 10 years)
 Inactive Secondary Market, absence of central price
discovery mechanics/platform

14. RECOMMENDATIONS
The role of SBP needs to be changed.
Mandatory for SBP to list it.
 Weak policies and unplanned structure
needs mass improvement.
Administration costs can be easily and
effectively handled.
Develop it to avoid monopoly.
Need for Technological developments –
transparency and liquidity

15. LITERATURE REVIEW

16. Title Author Year Sample Result
A Study on
the Impact of
Selected
Monetary,
Fiscal,
Economic
Variables on
the Indian
Bond Market
Dr. R.
Himachalapa
thy,
Rakshitha
2015 Country: India
Sample: Govt bonds
Time Span: 2005 to
2015
Significant relationship between
yield rates and bank rate, repo
rate, reverse repo, Index of
Industrial Production, Wholesale
Price Index and GDP
Positive relationship between
yield rates and bank rate, repo
rate, reverse repo rate, Index of
Industrial Production, Wholesale
Price Index and GDP
Information
Content of
Yield Spread:
Economic
Growth of
Malaysia
Joanne Yen-
Ei Keki and
Kim-Leng
Goh
2015 Country: Malaysia
Sample: 10 year
Malaysian govt
security and 3 month
T-Bills
Time Span:1997 to
2012
Significant relationship between
yield spread and economic
activity
Positive Relationship between
yield and economic factors

17. Title Author Year Sample Result
A Comparative
Analysis of
Returns of
Various Financial
Asset Classes in
South Africa, A
Triumph of
Bonds
C. Auret
and R.
Vivian
2014 Country: South Africa
Sample: Equities, bonds and
cash in South Africa
Time Span: 1986 to 2013
No significant relationship
between the returns of
equities over long bonds
even before adjusting for
risk
Exchange Rate
Risk and Local
Currency
Sovereign Bond
Yields in
Emerging
Markets
Blaise
Gadanecz
, Ken
Miyajima,
Chang
Shu
2014 Country: 20 economies
Sample: 5 year local
currency sovereign bonds of
20 economies
Time Span: 2005 to 2013
Significant relationship
between exchange rate
risk of emerging market
economies and local
currency sovereign bond
yields
Positive relationship

18. Title Author Year Sample Result
The Interest rate
Effects on
Government
Debt Maturity
Jagjit S
Chadha, Philip
Turner and
Zampolli
2013 Country: US
Sample: 5 & 10 year T-Bills
Time Span: 1976 to 2006
Significant relationship
between dividend
yield, CPI and GDP
Positive relationship
An Empirical
Analysis of the
Performance of
the Ghana
Stock Exchange
and Treasury
Bills
Samuel Antwi 2012 Country: Ghana
Sample: Annual returns of
the Ghana Stock Exchange
all-share index and
Treasury bill
Time Span: 1990 to 2010
Significant relationship
between risk and
return of equity market
and significant
relationship between
risk and return of debt
market.
Positive relationship

19. Title Author Year Sample Result
The Impact of
Changes in
Financial and
Macroeconomics
Variable on Term
Structure of
Interest Rates in
Malaysia
Ong Tze
San, Lai
Yoke and
Heng
2012 Country: Malaysia
Sample: One and 10 year
Malaysian govt securities
Time Span:1997 to 2009
Money supply and current
account have significant
relationship on bond yield
Money supply has a positive
relationship with bond yield,
whereas current account has a
negative relationship with bond
yield
Fiscal Deficits,
Public Debt, and
Sovereign Bond
Yields
Baldacci
and
Kumar
2010 Country: 31 advanced and
emerging market
economies
Sample: Fiscal deficit and
government debt in 31
countries
Time Span: 1980 to 2008
Higher deficits and public debt
lead to a significant increase in
long-term interest rates
Positive relationship between
large fiscal deficits and public
debts and sovereign bond
yields
Factors
Influencing Yield
Spreads of the
Malaysian Bonds
Norliza
Ahmad
and
Joriah
Muhamm
ad
2009 Country: Malaysia
Sample: Govt securities
and corporate bonds
Time Span: 2001 to 2008
CPI and interest rates have a
significant relationship with the
yield spread of Malaysian
Government Securities
Positive relationships

20. FACTORS IDENTIFIED THROUGH
LITERATURE REVIEW
Risk
Interest Rate
Fiscal Deficit
Exchange Rate
GDP

21. METHODOLOGY

22.  Interviews
 Literature Review
RESEARCH TECHNIQUE
QUALITATIVE
QUANTITATIVE
 Regression of Bonds’ Data & External Factors’ data
run on Stata

23. VARIABLES
 PIB 3, 5 & 10 YEAR BONDS
DEPENDENT VARIABLE
INDEPENDENT VARIABLES
 Standard Deviation
 Interest Rate
 Fiscal Deficit
 Gross Domestic Product
 Exchange Rate

24.  Reuters, World Bank & Pakistan Economic Survey
TIME PERIOD
 2005 to 2015 (11 years)
DATA COLLECTION

25. REGRESSION MODEL
The following regressions are performed in our study-
 Pooled
 Fixed
 Random
 Four models are developed to check the
relationship.

26. EQUATION
 Model (1 – All Bonds,
2 – Three Year PIBs
3 – Five Year PIBs
4 – Ten Year PIBs)
 Bond Yields = f (Risk, fiscal deficit, interest rate,
exchange rate, GDP)
OR
 Y = βo + β1X1(Risk) + β2X2(Fiscal Deficit) +
β3X3(GDP) +β4X4(Interest Rate) +
β5X5(Exchange Rate)

27. There exists a Positive relationship between Risk and
bond yield.
There exists a positive relationship between interest
rate and bond yield.
There exists a negative relationship between exchange
rate and bond yield.
There exists a negative relationship between GDP and
bond yield.
There exists a positive relationship between fiscal
deficit and bond yield.
Hypothesis

28. RESULTS

29. DESCRIPTIVE OF MODEL 1(ALL BONDS)
Variable
Mean Standard
Deviation
Min Max Observations
Yield overall 11.30100. 1.807156. 7.622. 13.474. N = 33
between 0.388582. 10.925. 11.701. n = 3
within 1.778202. 7.998. 13.782. T = 11
Risk overall 0.05345. .2E49259 -0.349. 0.744. N = 33
between 0.020821. 0.033. 0.074. n = 3
within 0.214231. -0.370. 0.723. T = 11
Interest
Rate
overall 0.06585. 0.018400. 0.026. 0.087. N = 33
between 0.000000. 0.066. 0.066. n = 3
within 0.018400. 0.026. 0.087. T = 11
Exchange
Rate
overall 0.06446. 0.058037. -0.005. 0.161. N = 33
between 0.000000. 0.064. 0.064. n = 3
within 0.058037. -0.005. 0.161. T = 11
Gross overall 0.04156. 0.018332. 0.016. 0.077. N = 33
Domestic between 0.000000. 0.000. 0.042. n = 3
Product within 0.018332. 0.016. 0.077. T = 11
Fd Overall 0.05645. 0.014642. 0.033. 0.082. N = 33
between 0.000000. 0.056. 0.056. n = 3
within 0.014642. 0.033. 0.082. T = 11

30. Independe
nt
Variables
Coef. Std.
Err.
T P>t Coef. Std. Err. T P>t Coef. Std. Err. z P>z
Risk
3.9274. 0.721 5.44 0.000 4.2147
0.553816 7.61 0.000 3.927356 0.721953 5.44 0.000
Interest
Rate
81.8439 16.49 4.96 0.000 86.083
12.61:639 6.83 0.000 81.84388 16.49433 4.96 0.000
Exchange
Rate
-4.3706. 2.442 -1.79 0.085 -4.5727
1.86271 -2.45 0.021 -4.3706 2.442986 -1.79 0.074
Gross
Domestic
Product
-24.1592. 14.57 -1.66 0.108 -21.491
11.124 -1.93 0.065 -24.1592 14.57399 -1.66 0.097
Fiscal
Deficit
11.8870. 11.46 1.04 0.308 11.791 8.736152 1.35 0.189 11.89698 11.46075 1.04 0.299
_cons
6.2719. 1.665 3.77 0.001 5.8835 1.272432 4.62 0.000 6.271927 1.665641 3.77 0.000
Pooled Regression Fixed Effect Random Effect
Adj R square 0.898 R square R square
Within 0.9433 Within 0.9428
Overall 0.8975 Overall 0.8980
F test 47.53 F test 83.2
Model 1 (All bonds included)

31. MODEL 2 ( 3 YEAR PIB BOND)
Independent
Variables
Coef. Std. Err. T P>t
Risk 4.1242. 1.015386 4.06 0.010
Gross Domestic
Product
-32.7755. 24.33905 -1.35 0.236
Interest Rate 96.6465. 28.1523 3.43 0.019
Exchange Rate -6.3025. 4.282961 -1.47 0.201
Fiscal Deficit 7.7628. 19.86533 0.39 0.712
_cons 5.5210. 2.8443616 1.94 0.110
Pooled Regression
Adj R square 0.9502
F test 19.08

32. MODEL 3 ( 5 YEAR PIB BOND)
Independent
Variables
Coef. Std. Err. T P>t
Risk 5.058. 0.8662832 5.84 0.002
Interest Rate 99.17184 - 18.60818 5.33 0.003
Exchange Rate
-5.195. 2.655264
1.96 0.108
GDP
-13.354. 16.17758
0.83 0.447
Fiscal Deficit 12.648. 12.40545 1.02 0.355
_cons 4.601.202 1.87641 2.45 0.058
Pooled Regression
Adj R square 0.9502
F test 19.08

33. MODEL 4 ( 10 YEAR PIB BOND)
Pooled Regression
Adj R square 0.9937
F test 316.78
Independent
Variables
Coef. Std. Err. T P>t
Risk 6.327. 0.4194798 15.08 0.000
Gross Domestic
Product
8.071. 6.068317 1.33 0.241
Interest Rate 98.758. 6.831279 14.46 0.000
Exchange Rate -3.417. 0.8774736 -3.89 0.011
Fiscal Deficit 11.578. 4.201141 2.76 0.040
_cons 4.187. 0.6747056 6.21 0.002

34. DISCUSSION

35. HYPOTHESIS: YIELD HAS A POSITIVE
RELATIONSHIP WITH STANDARD DEVIATION (RISK)
 Results shows that as risk increase return increase
 Risk is a measure of volatility
 Bonds with high volatility risk have higher yield
 Bonds with low volatility have lower yield
 PIBS are sovereign bonds, it doesn’t have liquidity, default risk.

36. HYPOTHESIS: YIELD HAS A POSITIVE
RELATIONSHIP WITH STANDARD DEVIATION
(RISK)
 PIBs have inflation risk and interest rate risk
 Coupon payments are fixed it doesn’t increase with inflation

37. YIELD HAS A POSITIVE RELATIONSHIP WITH
INTEREST RATE
 Interest rate is an important factor and affects returns of all
investments
 Increase in interest rate increase a return on bonds
 Bond yield is directly correlated with interest rate as interest rate
increases bond yield increase and coupon payment on bonds
increase.
 As interest rate increases the prices of previously issued bond
decrease as new bonds would offer higher yield.

38. HYPOTHESIS: YIELD HAS A NEGATIVE
RELATIONSHIP WITH GDP
 According to academic theories increase in GDP is due to
increase total investment
 It increases demand pull inflation
 To overcome demand pull inflation government increases
interest rate which increase bond yield.
 In Pakistan bond yield and GDP have negative relationship

39. HYPOTHESIS: YIELD HAS A NEGATIVE
RELATIONSHIP WITH GDP
 Pakistan has done huge borrowings from IMF and is moving
towards new era of growth due to CPEC.
 Foreigners and locals are investing huge amount of money in
mega projects
 Government is decreasing interest rate to encourage investment
and discourage fixed deposits
 It gives incentive to companies to invest in business leading to
increase in investment component leading in increase in GDP.

40. HYPOTHESIS: YIELD HAS A NEGATIVE
RELATIONSHIP WITH EXCHANGE RATE
 Pakistan has done huge borrowing from IMF and World Bank to
overcome its fiscal deficit
 Under current IMF program Pakistan is forced to devalue its
local currency and decrease its interest rate
 It would increase money supply in an economy and discourage
deposits in saving account to encourage investment in an
economy
 The purpose is to increase growth through investment

41. HYPOTHESIS: YIELD HAS A POSITIVE RELATIONSHIP
WITH FISCAL DEFICIT
 Bond Yield and fiscal deficit has positive relationship
 Fiscal deficit increases ,yield increase.
 In Pakistan government tries to fill a gap of fiscal deficit by
issuing debts
 Fiscal deficit increase government increase an interest rate
 It attracts investors to buy the extra debt and limit the money
supply in economy

42. HYPOTHESIS: YIELD HAS A POSITIVE RELATIONSHIP
WITH FISCAL DEFICIT
 Banks heavily invest in T-Bills and PIBS.
 Same was happening in 2008.
 Creates “Crowding Out” effect by borrowing more money and
leaves less money for private sector
 Higher interest rates also can reduce the private sector's demand
for capital
 It reduce the demand for commercial and retail borrowing

43. SUMMARY OF RESULTS
Variables Relationship
Risk +
Exchange Rate -
Interest Rate +
Fiscal Deficit +
GDP -

44. LIMITATIONS OF THE STUDY
 Only 3, 5 and 10 year PIB Bonds are included in
the study
 The Research is done only on Pakistani Bonds.
 Only 11 years of data is has been included i.e. 2005
to 2015.

45. SUMMARY OF STOCK & BOND RESULTS
Variables Stocks Bonds
Risk + +
Exchange Rate - -
Inflation - Not Applicable
Foreign Direct Investment + Not Applicable
Interest Rate + +
Money Supple + Not Applicable
GDP + -
Fiscal Deficit +

46. INVESTOR’S MANUAL

47. KNOW WHAT INVESTMENT PRODUCTS ARE
AVAILABLE:
 Ordinary shares of listed companies
 Unit trust schemes
 Mutual funds certificates
 Corporate bonds i.e., Term Finance Certificates
(TFCs)
 Government securities i.e., Federal Investment
 Bonds(FIBs), Pakistan Investment Bond (PIBs)
 Special US Dollar Bonds

48. STRATEGIES FOR INVESTMENT.
 Top down
 Bottom up
 Value or growth
 Large or small cap
 Ethical investment and technical analysis

49. TIPS FOR INVESTING WISELY
When trading in the Stock Market, one should avoid:
 Greed
 Making the same mistake twice
 Following the crowd
 Putting all your ‘eggs in one basket’
 Using rumors as tips
 Emotions; being emotional can effect reasoning
 Traders should use research backed by
fundamental reasoning.
 Impatience
 Over borrowing

50. IMPORTANT CONSIDERATIONS FOR INVESTORS
 How Much Money Can You Afford to Invest?
 How Do You Want to Invest?

51. Questionnaire Analysis

52. RELIGION
59, 98%
1, 2%
Muslim Non Muslim

53. AGE
30%
22%
13%
35%
<30 years 30-39 years 40-49 years 50 and above

54. QUALIFICATIONS
39%
23%
38%
University/College Professional Both University/Professional

55. YEARS WITH THE PRESENT ORGANIZATION
28%
25%
15%
32%
0-1 years 1-5 year 6-10 years more than 10 years

56. YEARS IN THE PRESENT POSITION
38%
22%
9%
31%
<1 year 1-5 year 6-10 years >10 years

57. INCOME
20%
37%
15%
28%
Less than 25K Between 25K and 100K Between 100K and 200K More than 200K

58. PROFESSION
16%
16%
17%
17%
17%
17%
Student Doctor Broker Teacher Investor Other (Please Specify)

59. DO YOU KNOW ABOUT BOND MARKET?
78%
22%
Yes No

60. WHICH OF THE FOLLOWING TERMINOLOGIES
DO YOU KNOW OF
44
20
23
15
39
29
32
29
35
22
7 5

61. WHY DO YOU THINK PEOPLE INVEST IN BOND
MARKET?
LOW RISK HIGH RETURNS FOR
DIVERSIFICATION
OTHER (PLEASE
SPECIFY)
44
7
31
5

62. WHY DO YOU THINK PEOPLE DON’T INVEST IN
BOND MARKET?
1
41
35
26 28
20
33
5

63. WHY DO YOU THINK CORPORATE DON’T ISSUE
BONDS IN PAKISTAN?
NO NEED OF
ADDITIONAL
FUNDS
DIFFICULT TO
ISSUE
MORE COST
INVOLVED
OTHER (PLEASE
SPECIFY)
13
32 31
6

64. DO YOU INVEST IN CAPITAL MARKETS?
40%
60%
Yes No

65. HOW MANY TIMES DO YOU INVEST?
17%
67%
12%
4%
Daily Monthly Yearly Once in five years

66. IN WHICH SEGMENTS OF CAPITAL MARKET DO YOU
INVEST?
PROPERTY BOND
MARKET
STOCK
MARKET
MUTUAL
FUNDS
CURRENCY OTHER
(PLEASE
SPECIFY)
18
3
23
7
2
0

67. WHAT IS YOUR PORTFOLIO SIZE?
8%
17%
4%
71%
Less than 100K Between 100K and 300K Between 300K and 500K More than 500K

68. WHICH TYPE OF BONDS ARE YOU FAMILIAR
WITH?
GOVERNMENT SECURITIES CORPORATE BONDS
16
21

69. WHICH DO YOU PREFER INVESTMENT IN?
SHORT TERM DEBT
SECURITIES (SUCH AS T-
BILLS)
LONG TERM DEBT
SECURITIES (SUCH AS
PIBS)
BOTH SHORT-TERM DEBT
AND LONG TERM DEBT
3 2
19

70. WHAT ARE BONDS MOST SUITABLE FOR?
AS A MEANS TO
GENERATE
CAPITAL
AS A MEANS TO
SAVE IDLE CASH
AS A MEANS TO
GENERATE
ADDITIONAL
INCOME
OTHER (PLEASE
SPECIFY)
13
6
8
0

71. ARE YOU AWARE OF THE PROCEDURE TO
PURCHASE BONDS IN THE PAKISTAN MARKET?
33%
67%
Yes No

72. AMONG THE RISK-LESS FORMS OF INVESTMENTS
(BANK DEPOSITS, NATIONAL SAVINGS
CERTIFICATES), WHY DO YOU THINK THAT THE
BOND MARKET IS THE LEAST DEVELOPED?
DUE TO LACK
OF
AWARENESS
DIFFICULT TO
ACCESS AND
PURCHASE
LIMITED
OPTIONS
LOWER
RETURNS
THAN OTHER
FORMS OF
INVESTMENT
OTHER
(PLEASE
SPECIFY)
22
17
19
18
0

73. IN YOUR OPINION, DOES BOND MARKET NEED
FURTHER DEVELOPMENT BEFORE IT CAN START TO
ATTRACT HIGH NET WORTH INVESTORS?
96%
4%
Yes No

74. WHAT MEASURES CAN BE TAKEN TO IMPROVE THE BOND
MARKET IN PAKISTAN?
 Majority said that the awareness is the key for
improving the bond market
 Another key factor would be proper regulatory body
for maintaining transparency

75. WHY DO YOU THINK THERE IS A NEED FOR STRONG BOND
MARKET?
 Excess to extra funds for the issuer
 Another investing option would be created for the
investors
 Bond markets are a source of funding

76. IF YOU CHOSE ‘BOND MARKET’, SPECIFY WHICH TYPE
 Majority invested in government bonds as they are
risk free in nature
 Corporate bonds do not have much awareness

77. WHY DO YOU INVEST IN THE SEGMENTS
WHICH YOU MARKED?
 Majority responded higher returns being the most
important reason for investing in any capital market
 More then 80% of the respondents went with higher
return being an important reason for the selection of
their market
 Other respondents also selected diversification as
another reason for the selection of their capital
market

78. WOULD YOU PREFER ALTERNATIVE FORMS OF INVESTMENTS
OVER BONDS? SPECIFY THE REASON?
 Majority of the respondents said they would prefer
alternative forms of investments, specifically;
mutual funds
 Others preferred equity as it is more liquid
 Lack of information about bonds was the reason of
this preference

79. IN YOUR OPINION, SHOULD STEPS BE TAKEN TO
INCREASE AWARENESS AMONG POTENTIAL BOND
MARKET INVESTORS? IF YES, PLEASE SPECIFY THE
STEPS
 Majority said proper marketing campaigns should
be introduced
 Proper workshops should be held at institutes
 Some suggested allocation of budget to
regulatory bodies

80. THANK YOU!